CEE 4303 Lecture Notes - Lecture 20: Finance Lease, Operating Lease, Cash Flow

• School: Temple University
• Department: Civil Engineering
• Course: CEE 4303
• Professor: Dr.Kerins

Document Summary

The following are the transaction example from this chapter with result in a change in profit. The following are the transaction example from this chapter with result in a cash flow. The following are the transaction example from this chapter with result in in neither a change in profit not a cash flow. Underbilling is when a company is recording material, labor, and subcontractor costs throughout the month and not billed the owner until the first week of the following month will have an understated profit at the end of the month. In the percentage-of-completion method for construction accounting, the billings on uncompleted contracts are less than the income earned to date. Overbilling is when submitting a bill for an amount that would make the total amount billed on the job larger than the amount of revenue earned on the job. In the percentage-of-completion method for construction accounting, the billings are greater than the income earned on uncompleted contracts.